More than 1.4 million UK employees are now saving an average of £122.94 a month by investing in the oranisation they work for through share schemes, according to a study from IFS Proshare.
Data from its annual Sharesave (SAYE) and share incentive plan (Sip) survey reveals that these figures are up from 1.25 million employees saving £107.76 a month in 2013.
The research found that UK employees saved an additional £40 million through share schemes in 2014 compared to 2013.
The study also found:
- Following the government’s decision to raise monthly saving allowances, more than a fifth (21%) of employees have increased their contributions to sharesave schemes or Sips.
- The number of employees joining a sharesave scheme in 2014 rose to 576,538 from 378,420 in 2013.
- The percentage of employees choosing to join a five-year share scheme contract rose at the expense of a three-year contract, with the former rising from 18% to 20% while the latter fell from 83% to 80% over the same period.
Gabbi Stopp, head of employee share ownership at IFS Proshare, said: “These findings once again demonstrate the inherent value of employee share ownership to the economy, to productivity and to levels of savings throughout the UK.
“It is encouraging to see that recent changes introduced by HMRC [Her Majesty’s Revenue and Customs] and campaigned for by IFS Proshare have led to a greater uptake from employees deciding to participate in their employers’ share schemes.
“We will continue to make the case for employee share ownership, for our members and for employees of all organisations up and down the country so that more people and the UK economy may continue to benefit from these schemes’ undoubted advantages.”